Fiat Money vs Gold Standard - ISIS

Crazy radicals spreading propaganda but interesting overall on the consequences of central banks. The fiat money will crash, and many central banks know that. They hold a large portion of gold as part of their insurance when the paper money collapses from all the printing.

Current US Federal Reserve Interest Rate.

0%. Free money, printed or even digital is handed to banks from the federal reserve, buying bonds with a 0% interest rate for fiat money.

A new norm for America to create stimulus in the economy with inflated cash. A sign that the direction of our economy has not gotten any better. They have even considered to lower interest rate to the negatives.

The abandonment of the Gold Standard has brought the rise of counterfeit money from central banks. A robbery to all our precious resources.

Yes, what with our horrifying 2% annual inflation rate, our currency will soon be all but worthless

Well, I'm confident Yellen will raise interest rates before 2050.

That's why he will NEVER get elected, he talks about REAL issues that everyone else dances around.

lollllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll

We export inflation.

As the Federal Reserve floods the world with more dollars, other countries have one of two choices: 1) they can let the values of their own currencies rise or 2) they can print more of their own domestic currency to stay delta neutral with the deflating U.S. dollar.

Good thread to get us thinking

Whoa, Queen Elizabeth got mad loot!

Since the Illuminachos took down the video.

IS produced media is just so good.

Whoever views that video is definitely going on some government watch list lol.

I'm already flagged as being a terrorist for using Tor, looking at government scandals, and wearing a hoodie around cameras.

Fiat money bad. Shiny gold metal good. The coming collapse is always coming. The doom. The gloom.

The idiocy.

Also, I love going to the store and giving them bits of paper and they give me all kinds of stuff back. And to top it off, I also usually get bits of metal back too.

Metal good. Paper bad. I's is super duper smart.

I had to do it:

It astounds me that this is still a thing. The gold bugs have been empirically proven wrong by their own standards (Ron Paul has been heralding imminent hyperinflation since the year I was born), yet they continue to spread these fears.

Speaking of Queen Elizabeth, I think back in the 19th century the British had their money based on a silver standard, which helped make the British Empire quite prosperous.

As far as ISIS goes I wouldn't be surprised if they were using gold currency, obviously they can't integrate themselves into the world banking system so they probably are using some sort of hard currency.

*stocks up on gold coins i heard about on shitty late night infomercials*

i can eat gold right?

You should invest in food, water, survival gear, and firearms before anything else. That's the true way to survive any disaster. We can't predict when there will be a financial crisis or a huge global collapse that results into a huge disaster. Prepare for the worst.

Move to the silver standard! 19th century progress awaits!

@mattbbpl: Jolly Good mate!

ISIS moving to gold standard?

Well, this is gonna fall flat on their face so hard,

There are multiple problems with the gold standard

• There is not enough gold in the world. All the mined gold in the world would become roughly 7.1 trillion dollars. Which would NOT even be enough to cover the circulating money and deposits in the US economy alone. Shifting to a gold standard economy would lead to a massive deflation. Which would cause massive problems iwth the economy.
• Gold has plenty of industrial and medical applications. Trying to make gold our currency as well as a key material used in a lot of modern technology... I really dont see how that would work.
• Transporting gold simply put isnt very practical, in our globalized world, technolgized world, money is getting increasingly digitalized. Which isnt very compatitable with the gold standard.
• The gold standard is susceptible for scams. Our knowledge of chemistry is far superior to what it was back then. Nothing would prevent me from making coins that look like gold coins, but actually is composed of much cheaper materials.
• Gold is extremely dense.
• Much like many other things, gold has no inherent value. The only value it has is that value we have placed on it.
• A shift would likely cause a massive deflation. Deflations have a habit of screwing over people who are in debt.
• If the international trading system demanded trade accounts be settled in gold, covering imports of oil and goods as well as foreign debts. The US would be met with a massive contraction in the money supply, a deflationary spiral, unemployment, shortages of cash, misery, poverty, social unrest, and political instability.
• History shows that gold standards have not been effective in stabilizing the economy, quite the contrary actually. An economy is massively unstable with the gold standard as seen below.

There are multiple reasons why the Fiat system is generally superior.

• Since only the people in charge can control the productino of currency. The economy will be much more stabilized. No gold rushes leading to massive inflations for instance.
• Improved elasticity compared to the gold standard.
• Paper money, while instrinctively worthless (same goes for gold btw), is much cheaper to produce than organize huge, expensive mining operations.
• During a recession, the fiat system can be used to stimulate the economy.

One thing that was contributed to ending the great depression in the 30s was the switch to the fiat system, countries that swapped over did in general much better than those who tried to stick to the gold standard.

@Maroxad said:

ISIS moving to gold standard?

Well, this is gonna fall flat on their face so hard,

There are multiple problems with the gold standard

• There is not enough gold in the world. All the mined gold in the world would become roughly 7.1 trillion dollars. Which would NOT even be enough to cover the circulating money and deposits in the US economy alone. Shifting to a gold standard economy would lead to a massive deflation. Which would cause massive problems iwth the economy.
• Gold has plenty of industrial and medical applications. Trying to make gold our currency as well as a key material used in a lot of modern technology... I really dont see how that would work.
• Transporting gold simply put isnt very practical, in our globalized world, technolgized world, money is getting increasingly digitalized. Which isnt very compatitable with the gold standard.
• The gold standard is susceptible for scams. Our knowledge of chemistry is far superior to what it was back then. Nothing would prevent me from making coins that look like gold coins, but actually is composed of much cheaper materials.
• Gold is extremely dense.
• Much like many other things, gold has no inherent value. The only value it has is that value we have placed on it.
• A shift would likely cause a massive deflation. Deflations have a habit of screwing over people who are in debt.
• If the international trading system demanded trade accounts be settled in gold, covering imports of oil and goods as well as foreign debts. The US would be met with a massive contraction in the money supply, a deflationary spiral, unemployment, shortages of cash, misery, poverty, social unrest, and political instability.
• History shows that gold standards have not been effective in stabilizing the economy, quite the contrary actually. An economy is massively unstable with the gold standard as seen below.

There are multiple reasons why the Fiat system is generally superior.

• Since only the people in charge can control the productino of currency. The economy will be much more stabilized. No gold rushes leading to massive inflations for instance.
• Improved elasticity compared to the gold standard.
• Paper money, while instrinctively worthless (same goes for gold btw), is much cheaper to produce than organize huge, expensive mining operations.
• During a recession, the fiat system can be used to stimulate the economy.

One thing that was contributed to ending the great depression in the 30s was the switch to the fiat system, countries that swapped over did in general much better than those who tried to stick to the gold standard.

There is a gold rush going on right now in poor countries. Our manipulation with gold prices leaves these people poor. Gold isn't worthless when you use it for technology and as a good conductor with little resistance. You do raise some good points, especially our money being digital now, but the bad thing is you don't hold any of that money and you can't prepare for the worst with it.

I'm going with the metro currency system and hoarding up ammo.

lol Gold standard lol

Right? I find it funny, and kinda sad at the same time, that people keep spouting this gold standard "our money is worthless" crap.

Ammo, food, water, shelter, and love from others is all you need to survive the worst. That, and some universal knowledge.

I also love the fact that many of them have embraced bitcoin as an alternative despite the fact that it has even less intrinsic value than a traditional currency (not that gold has an intrinsic value approaching anything close to it's current perceived value either).

What he means is that gold (as a raw industrial material) isn't worth anything approaching it's current valuation. If the price of gold were to reflect that worth, it would be in the range of copper (which would be an enormous crash in the price of gold). It would be comparatively worthless.

In my opinion gold holds more value as a metal than a currency. Even if just for it's electrical conductivity.

I truly don't think there is a solution to the current economic crisis aside from people giving up lots of the luxuries they've come to take for granted.

I don't think I understand what you're saying here. How would a drop in aggregate demand/GDP resolve the economic crisis? I guess it might help to establish what you're referring to solving - the China slowdown? The Greek debt crisis? I'm not sure where you're coming from.

People taking on debt they can't afford to pay off in their lifetimes.

i.e. buying things they can't afford on credit.

Ammo can be used to exchange for those things, or secure them from people who would want to take them by force.

Rofl a Ron Paul nut. Fiat currencies are well known to be superior to metal-backed ones in pretty much every way except when it comes down to enriching the people who own those metals.